Los Angeles Office MarketView Q4 2018

The year ended with a flurry of big deals from large tech and media companies that expanded in Hollywood and Culver City. Companies headquartered in the Bay Area, Seattle and China signed deals larger than 100,000 sq. ft. as the convergence of content creators and delivery companies fueled growth in the market. Buildings with access to the region’s expanding rail system are popular with tenants because of their strong live-work-play dynamics. Large blocks of high-quality space are in short supply in West LA and Hollywood where existing blocks are shrinking and new construction is pre-leased. That may drive tenants to Burbank, El Segundo or the Arts District in search of Class A and creative office. Pre-leasing commitments for buildings under construction is 37% overall, the highest rate over the past several years.